[5/5 12:00] Coinbase 14% layoffs citing AI acceleration / Pennsylvania sues Character AI - chatbot posed as medical professional

AI News Flash for May 05, 2026 at 12:00 UTC. Topics: 1. Coinbase 14% layoffs citing AI acceleration https://www.cnbc.com/2026/05/05/coinbase-cuts-headcount-by-14percent-citing-ai-acceleration-the-shares-are-gaining.html 2. Pennsylvania sues Character AI - chatbot posed as medical professional https://www.cbsnews.com/news/pennsylvania-character-ai-lawsuit-chatbot-posed-as-medical-professional/ 3. White House pivots toward frontier AI safety testing https://www.axios.com/2026/05/05/us-frontier-ai-testing-white-house-pivots-safety 4. Microsoft - AI power users pulling away from everyone else https://www.fastcompany.com/91536348/ai-power-users-are-pulling-away-from-everyone-else-says-microsoft